NEW YORK -- Dr. Pepper Snapple (DPS) has been shooting higher since reporting quarterly results two weeks ago, and traders are looking for even more gains.

OptionMonster's tracking systems detected the purchase of about 5,000 April 55 calls for 29 cents to 50 cents on Tuesday. There was no previous open interest at the strike, so new money was clearly being put to work.

These long calls lock in the price where the stock can be purchased through mid-April no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below $55.

Dr. Pepper Snapple's stock rose 1.41% to $52.48 Tuesday. The beverage company had been rangebound since last October but gapped up from below $49 on Feb. 12 after beating earnings estimates and issuing guidance above forecasts.

Total option volume in the name was just shy of 6,500 contracts Tuesday, 28 times its daily average for the last month. Only 121 of those contracts were puts, a reflection of the session's bullish sentiment.

Yamamoto has no positions in DPS.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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